4 Best Investments for 2024
If you’re thinking about your long-term financial future, then investing may be a key part of your plan. In this '4 Best Investments' guide, we cover some of the best investment trends for this year and how to start investing in them with competitive commissions and premium analytical tools.
Table of Contents
4 Best Investments 2024
Below is a quick list of what could be some of the best investments for this. It’s a great place to start for further research and analysis which we cover further in this guide.
- Nasdaq 100 Stock Index
- FTSE 100 Stock Index
- Crude Oil Futures or ETFs
- Gold (Physical, Stocks, ETFs)
When trying to find the best investments it’s always important to do your own research and have strict risk management guidelines as any form of investing involves winning and losing and no one can ever truly know what is the best for the future. This is why research, testing and risk management are essential to navigating the markets as safely as possible.
Best Investments: Research & Analysis
If you’re thinking about what to invest in right now, the list below provides some insight into a few of the big investment trends and themes for this year. This list is not exhaustive and many other markets and themes could prove to be better.
It’s also worthwhile remembering that any major investment theme or trend can change over time so also focus on risk management. Ultimately, the best investments right now will depend on your risk tolerance and goals for your investing portfolio.
1. Nasdaq 100 Stock Index
The Nasdaq 100 stock market index is a basket of the largest 100 companies listed on the NASDAQ Stock Exchange. The majority of the companies listed on this exchange are technology companies. The index includes companies such as Amazon, eBay, Facebook, Microsoft, Tesla, etc and is one way to trade the US stock market.
Since the lows of the coronavirus pandemic to the end of 2021, the index has risen nearly 150%. This was largely due to the shift towards remote working where technology stocks benefitted the most. While traders and investors could research and invest in individual technology stocks, the Nasdaq 100 index provides exposure to the broader sector.
In 2022 investors feared the aggressive pace of interest rate hikes from the Federal Reserve and the impact this would have on borrowing costs and corporate growth. Subsequently, global stock markets entered into a bear market in 2022.
For 2023, analysts forecasted the Federal Reserve to slow down the pace of interest rate hikes with potential interest rate cuts towards the end of the year. In early 2024, the Nasdaq 100 index recorded new all-time highs as the Fed planned several potential rate cuts over the year. Another way to capitalise on the potential growth in the technology sector is through using growth investing strategies on individual stocks. You can also learn more about the Best Shares to Buy.
2. FTSE 100 Stock Index
The FTSE 100 stock market index is an index of the biggest 100 UK companies by market capitalisation listed on the London Stock Exchange. While the UK economy has been impacted by Brexit, several prime ministers in a short period and a chaotic mini-budget in 2022, the index started 2023 with a 2022 performance that was the third best-performing index after the Brazilian and Indian stock markets.
The resilience of the FTSE 100 index during this period is an interesting factor. As the UK has been shunned for many years, it could represent more of a value-investing opportunity. A key factor for the growth of the UK 100 index is the British pound. As around 80% of the profits from the 100 companies in the index come from abroad, a lower pound can help to boost overall profitability. Therefore, currency flows will play a big factor.
In fact, in early 2023, the index already went on to make a new all-time high. This could provide some unique value investing opportunities for the best investments UK. Learn more in the How to Trade FTSE 100 Index Trading Strategies article. In the first quarter of 2024, the FTSE 100 index exhibited a trend higher towards a new all-time high. With the UK Election in 2024, it's an interesting time for UK markets.
3. Crude Oil Futures or ETFs
The price of crude oil has had a roller coaster ride in the past few years. Even before the pandemic, oil prices were falling. After the pandemic, global demand dried up while supply increased due to the Saudi Arabia and Russia oil price war. In 2022, the Russia-Ukraine war and the European energy crisis contributed to some wild swings in oil prices.
The lower supply of oil from Russia and OPEC+ supply cuts are just a few factors that could lead to a tightening of oil prices. Analysts at ING believe Brent crude oil could average around US$104/bbl for the year.
The demand for oil is also set to increase as China scrapped its Zero Covid policy in late 2022. The opening of the economy may lead to an increase in demand and a time when supply is more limited. The combination of these factors is likely to help fuel higher oil prices, depending on any other geographical events.
There are a variety of ways to speculate on the price of oil. As the product trades through exchanges like the New York Mercantile Exchange, you can trade oil futures contracts. You can also invest in exchange-traded funds (ETFs), such as the United States Oil Fund ETF, which tracks the underlying price of the oil futures market.
From the Admirals multi-asset trading platform, you can access both markets and trade them via CFDs (contracts for difference). This product allows you to speculate on the price direction of the market, without owning the underlying asset. This means you can trade long and short and potentially profit from both rising and falling markets.
4. Gold (Physical, Futures, Stocks, ETFs)
Gold could be in for a very interesting year. In 2022, the gold price failed to make a new all-time high and declined to lows not seen since 2020. However, the gold price managed to hold these lows at $1,675 and ended 2022 strongly with the price continuing the trend and creating a new record high in the middle of 2023. After a subsequent decline, gold went on to record new all-time highs in the first quarter of 2024 as the US dollar fell and rumours of Federal Reserve interest rate cuts.
According to the World Gold Council, there are a variety of factors that could impact the price of gold this year. The most important are central banks' interest rate policy decisions, the potential of a recession and any further geopolitical issues.
There are a variety of ways to trade gold with Admirals. These include:
- Gold CFDs. This allows you to speculate on the price direction of gold prices without owning the underlying asset. With CFDs, you can also trade on margin which means you could control a larger position with a small deposit amplifying both gains and losses.
- Gold Stocks. Admirals offers more than 4,000+ stocks from around the world including many of the top gold mining stocks such as Barrick Gold and Newmont Mining.
- Gold ETFs. A gold ETF allows you to invest in a fund that tracks the underlying price of the gold market by investing in gold companies or the actual physical metal. There are thousands of ETFs available in the Admirals platform.
- Gold Futures. Gold is also traded via futures contracts on a futures exchange such as the Chicago Mercantile Exchange's Commodity Exchange. Learn more in the How to Trade Futures article.
How to Get Started with the Best Investments UK
With Admirals, you can trade and invest in numerous stocks and ETFs from all around the world, with the following commissions:
- UK stocks and ETFs – 0.1% of trade value, 1 GBP minimum commission.
- US stocks and ETFs – From $0.02 per share, 1 USD minimum commission.
- France/Germany stocks and ETFs - 0.1% of trade value, 1 EUR minimum commission.
You can also invest in commodity CFDs such as gold CFD or oil CFD with zero commission. CFDs, or contracts for difference, allow you to trade long and short. Learn more in the How to Trade CFDs guide. You can also learn more about trading and investing commissions on the Admirals Contract Specification page. You can search for Small Cap stocks and ETFs from the MT5 web platform and invest in four steps:
- Open an account with Admirals.
- Click on Trade on one of your live or demo trading accounts to open the web platform.
- Search for your symbol at the top of the search window.
- Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level.
Conclusion
Answering the question of what are the best investments right now and where is the best place to invest money right now is tricky. Asset prices move up and down regularly. However, identifying long-term themes can be useful as asset prices tend to exhibit more sustained trends during this period. Keeping track of global economic events and themes is important to identify the best investment. Market timing and risk management are also key traits to invest successfully.
Continue Reading:
- Top 10 UK Shares to Watch
- Best Shares to Buy
- Best NASDAQ ETF
- Best S&P 500 ETF
- Best Vanguard ETFs
- What Are ETFs? ETFs Explained
- How to Trade ETFs with €1000
- The CFD Trading Guide
FAQs on Best Investments
What investments get the best returns?
As asset prices are affected by domestic economies and geopolitical events, the best investments will change over time. The most important factor is to specialise in a type of asset class, use a well-defined strategy and exercise proper risk management to deal with the volatility and the uncertain nature of global markets.
What are the top 5 investments?
Investments can fall under the following categories. Some of the most common include stocks, bonds, commodities, mutual funds and exchange traded funds.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst (hereinafter “Author”) based on personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
